Snap shares rise sharply in after-market trading following stronger guidance for the second quarter.
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Snap, which is behind Snapchat, presented results for the first quarter on Thursday evening.
The result was 1.19 billion dollars in revenue.
Revenue was expected to land at $1.12 billion, according to estimates obtained by Bloomberg.
The adjusted result per share was three cents, while it was previously expected to land at minus five cents.
The market responds by sending the share up nearly 23.2 per cent in after-market trading at 22.25.
The company expects a turnover of 1.23 – 1.26 billion dollars in the second quarter. That’s stronger than the $1.21 billion that was expected beforehand.
Bloomberg highlights the strong guidance as the background for the strong share jump.
The app now has 422 million daily users, an increase of 10 percent from the corresponding period last year.
The number of daily active users is an important measure of how the photo and chat app is doing. In advance, this was expected to land at 419.87 million in the quarter.
The number of users of Snapchat+ tripled from the same quarter last year, and has now passed nine million subscribers.
“The value we bring to our community and our advertising partners has translated into improved financial performance,” said Snap CEO Evan Spiegel in a statement.
Snap’s stock has struggled so far this year, especially compared to other social media companies such as Meta.
Since the new year, the stock was down more than 30 percent before the quarterly figures were released. Towards today’s figure release, however, the share rose.
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